Page 16 - NorthAmOil Week 27

NorthAmOil PERFORMANCE NorthAmOil

ExxonMobil has responded to the contrac- reiterated that point last week. “The long-term
tion of energy markets by announcing plans fundamentals that drive our business have not
to rein in spending by $10bn and cut output by changed,” Woods said, according to a Reuters
400,000 barrels per day (bpd) this year. It has report.
also insisted, though, that it sees oil and gas as He acknowledged, though, that ExxonMobil
long-term growth propositions. was likely to have “a very challenging summer”
Darren Woods, the company’s CEO, in 2020. ™

EIA sees US gas consumption and

demand dropping in 2020-2021

THE US Energy Information Administration second half of 2021, as natural gas prices in the
(EIA) has said it expects domestic production forecast rise,” it wrote.
of and demand for natural gas to decline in 2020 The agency went on to say that “lower con-
and 2021. sumption in the industrial sector because of
In the latest version of its monthly Short- COVID-19 mitigation efforts and related reduc-
Term Energy Outlook (STEO), EIA noted that tions in economic activity” would be the main
US dry gas output had reached an all-time high factor driving demand down in 2020. It also
of 92.21bn cubic feet (2.61bn cubic metres) per predicted, though, that higher prices would curb
day in 2019. Likewise, gas consumption levels demand in 2021.
hit a record high of 84.97 bcf (2.41 bcm) per day, “Forecast US natural gas consumption
it noted. declines by 5% in 2021 as a result of expected
These levels are no longer sustainable, as rising natural gas prices,” the EIA stated. “The
public health measures designed to rein in the rising prices will reduce the use of natural gas in
coronavirus (COVID-19) pandemic have dis- the electric power sector, which will more than
rupted the supply/demand balance, the agency offset increases in natural gas consumption in
commented. As a result, it said, the US is likely the industrial, commercial and residential sec-
to see dry gas production average 89.24 bcf (2.53 tors.” ™
bcm) per day in 2020, down by 3% year on year,
and then sink by another 6% to 84.23 bcf (2.39
bcm) per day in 2021.
Gas consumption is also set to go down, the
EIA said. It predicted that consumption would
sink by 3% year on year to 82.35 bcf (2.33 bcm)
per day in 2020 and by another 5% to 78.62 bcf
(2.23 bcm) per day in the following year.
According to the STEO, production will
decline this year because of “falling natural gas
prices that [have] caused a decline in drilling
activity and production curtailments.” It indi-
cated that these developments would continue
to affect the industry in 2021 but said that con-
ditions might approve by the end of next year.
“EIA expects production to increase during the

POLICY
Brouilette OKs Jordan Cove LNG exports

THE US Secretary of Energy Dan Brouillette in Coos Bay, Oregon.
issued a final long-term order on July 8 author- The decision follows a move by the Depart-
ising the export of domestically produced LNG ment of Energy (DOE) in to give 2014 condi-
from the proposed Jordan Cove LNG Terminal tional approval of exports from the Terminal.

P16 www. NEWSBASE .com Week 27 09•July•2020